Brazil sets price caps for Dec 7 auctions

Author: HoSt. License: All rights reserved.

November 7 (Renewables Now) - Brazil's power sector regulator Aneel approved on Tuesday the price ceilings for the auctions scheduled for December 7, 2018, which will contract electricity from existing plants.

Dubbed A-1 and A-2, these tenders will have an initial bid of BRL 170 (USD 45.4/EUR 39.7) per MWh and BRL 162 per MWh, respectively. They will be negotiated in Brazil's regulated market in the forms of amount of electricity, for biomass and natural gas plants, and in the form of availability of electricity for the other energy sources, not specified.

In regards to the amount of electricity model, buyers may have to bear the hydrological risk, while in the availability model, the sellers will take the risk.

The government will award power purchase agreements (PPA) with terms starting on January 1, 2019 and January 1, 2020, respectively.